During his campaign for the 2024 election, Donald Trump made promises of bringing back jobs.
He promised his base that all the American businesses abroad would come home. And to ensure they do, Trump will impose tariffs on the major trade partners.
He also promised tariffs on Canada and Mexico to stop drug cartels and illegal immigration. It seems like the time to fulfill those promises has finally come.
On Monday, President Trump announced that the promised 25% tariff on neighboring nations Mexico and Canada would be implemented on Tuesday. This has sparked new fear in an already dwindling economy with skyrocketing prices of basic goods and groceries.
Trump told reporters in the Roosevelt Room, “And that’ll start.” “They will need to impose a tariff.”
According to Trump, the purpose of the tariffs is to compel the two neighbors of the United States to increase their efforts to combat fentanyl trafficking and halt illegal immigration. However, Trump has also clarified that he wants to push more factories to move to the US and end the trade imbalances between the Americas.
The Dow Jones is down over 675 points right now after Donald Trump announced he will be implementing the 25% tariffs on Canada and Mexico tomorrow.
Bro is tanking our economy.pic.twitter.com/tcmJnQQbat
— Art Candee 🍿🥤 (@ArtCandee) March 3, 2025
Just as expected, his announcement rattled the stock market further. Monday afternoon trade saw a 2% decline in the S&P 500 index.
Donald Trump’s decision to start a trade war will further increase the trade imbalance. Inflation will increase, and political relationships with the United States’ biggest trade allies will be in jeopardy.
Wall Street and other economic experts have been warning against this trade war since before the election. Only the Trump administration seems confident that these tariffs will bring back the companies. The administration keeps pushing the narrative that these tariffs will help improve US manufacturing and attract foreign investment.
🚨🚨20% Tariff on China Starting Tomorrow 03/04 https://t.co/tcOMVTy5bE pic.twitter.com/ypB9bIacXe
— Crypto 3.0 (@BitcoinWhale02) March 3, 2025
In addition to Canada and Mexico, Trump has also imposed a 10% tariff on all Chinese goods, which will increase to 20% on Monday.
Canadian Prime Minister Justin Trudeau has called out these tariffs as an unintelligent decision and said there is no justification for them. He also said that Americans may lose thousands of jobs and spend more on groceries, gas, and automobiles due to the US tariffs.
He then added that these tariffs would ruin a very profitable trading partnership and violate the identical trade deal that President Trump negotiated during his previous administration.
China recently announced that they are banning the export of the critical minerals Gallium, Germanium, and Antimony to the U.S.
All three of these minerals, that are crucial to the production of semiconductors and other key military technologies, exist right here, in Ontario. pic.twitter.com/2tubefiDJd
— Victor Fedeli (@VictorFedeli) January 12, 2025
However, countries are not taking this tariff increase quietly, and the retaliation is visible. China has banned the export of precious minerals to the United States. These minerals are key components in the manufacture of defense equipment, computer chips, and mobile phones.
Canada will also respond in kind. It will impose 25% tariffs on $155 billion Canadian ($107 billion US) worth of American goods over 21 days. After midnight Tuesday, it will begin with $30 billion Canadian ($21 billion US).
🚨 This is catastrophic. Canada is hitting back with $155B in tariffs on U.S. goods—cars, steel, coffee, OJ, you name it. Markets hate uncertainty, and Donald Trump’s reckless trade policies are fueling panic. With a recession looming, this is the last thing America needs. pic.twitter.com/drjYkLYagH
— Russell Drew (@RussOnPolitics) March 3, 2025
Mexico, however, is waiting for the tariffs to be imposed. As per the last report, Mexican President Claudia Sheinbaum is waiting to confirm Trump’sTrump’s next move.
As per the discussion in February, both countries tried to show good faith. Mexico dispatched 10,000 National Guard members to their shared border in an effort to combat illegal immigration and drug trafficking. Canada also promised to control the fentanyl trade across the border, which is already minute in comparison.
Now, the time is to wait and watch whether Trump goes ahead with his tariff decision and, if he does, how much it will cost the American people.
